Bajaj Finance Shares Experience Significant Rally Amid Positive Market Sentiment
April 7, 2025 | New Delhi, India
Shares of Bajaj Finance saw an impressive surge of 6% on Monday, positioning the company as a leading gainer on both the Sensex and Nifty indices. The stock hit an intraday high of ₹7,339.9 per share, contributing to a notable market performance amid a broader upswing, highlighted by the Sensex adding over 1,000 points to reach the 79,520 level by the afternoon.
Analyst Optimism Fuels Stock Growth
Market analysts attribute the rise in Bajaj Finance’s share price to continued bullish sentiments from financial institutions, particularly global brokerage firm Citi. Citi has maintained a ‘Buy’ rating on Bajaj Finance, emphasizing a target price of ₹8,150. The brokerage has initiated a ’90-day catalyst watch’ on the stock, signaling that it expects favorable developments in the near term.
In their assessment, Citi estimates a modest increase in credit costs to between 2.2% and 2.25% in the third quarter, with assets under management (AUM) anticipated to grow by approximately 6% quarter-on-quarter and 7% year-on-year. This growth is expected to be propelled by sectors such as mortgages, sales financing, and the introduction of new business lines. Furthermore, analysts predict a positive bias for net interest margins (NIM), with an anticipated rise of 3 to 5 basis points.
Performance Comparison with Bajaj Finserv
In tandem with Bajaj Finance’s upward trajectory, shares of Bajaj Finserv also rose sharply, achieving an 8.9% increase to reach an intraday high of ₹1,717.45 per share. Bajaj Finserv’s robust performance highlights the strength of the Bajaj Group’s financial entities amid market fluctuations.
Historical Context and Future Outlook
Over the past month, Bajaj Finance shares have seen a modest overall gain of 4%, contrasting with a 1% decline in the Sensex index. The stock previously reached a 52-week high of ₹7,830 on January 9, 2024, and an all-time high of ₹8,190 on October 6, 2023. Bajaj Finance now boasts a market capitalization of ₹4.4 trillion, highlighting its significant presence in the Indian financial services sector.
Financial analysts from Mirae Asset Sharehan conveyed confidence in the company’s future, suggesting that earnings growth will align more closely with asset growth, particularly in light of anticipated stabilization in credit costs and NIMs. They have reiterated their own ‘Buy’ rating for Bajaj Finance shares, raising their target price to ₹9,500. ### Financial Performance Overview
Bajaj Finance reported a robust net profit increase of 13% year-on-year, reaching ₹4,013 crore, alongside a year-on-year AUM growth of 28.8%, bringing the total to ₹373,924 crore. Moreover, the company’s net interest income surged 28% year-on-year, totaling ₹14,987 crore, further solidifying its financial health.
Conclusion
As Bajaj Finance continues to rally in support of a strong market sentiment bolstered by optimistic forecasts from analysts, it is clear that the company remains a leader in the Indian non-banking financial institution landscape. Investors will be keen to monitor the upcoming financial movements and broader market trends to gauge the sustainability of this upward momentum.
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